Investor Ross Gerber, co-founder of Gerber Kawasaki, has expressed concerns about the recent merger between SpaceX and xAI, questioning the long-term financial viability of the combined company.
The Merger and its Implications
The SpaceX-xAI merger, valued at nearly $1 trillion, aims to boost Elon Musk’s ambitions in space-based data centers. However, Gerber wonders what will happen when the combined company runs out of funds. He suggests that the pattern of mergers may continue, with SpaceX potentially merging with Tesla next.
Funding Concerns
xAI reported a loss of $1.46 billion in Q3, with expenses totaling nearly $7.8 billion in the first nine months of 2025. The company generated only $107 million in revenue during Q3. These financials have raised concerns about the company’s ability to sustain itself without relying on mergers to access more funding.
Potential Tesla Merger
The possibility of a SpaceX-Tesla merger has been discussed, with some speculating that it could happen in the near future. However, investor Gary Black believes that such a deal would not be beneficial for Tesla shareholders, citing the potential 35% dilution as a major concern.
Reactions from Investors
Other investors, including Michael Burry, have also questioned the merger, with Burry describing Elon Musk as a “desperately incentivized futurist.” The merger has sparked a heated debate about the future of these companies and their financial sustainability.
What’s Next?
As the details of the SpaceX-xAI merger continue to unfold, investors and industry watchers are eagerly waiting to see how the combined company will address its funding concerns. Will the merger with Tesla happen, and if so, what will be the implications for the companies involved? Only time will tell.
Key Points to Consider
- The SpaceX-xAI merger is valued at nearly $1 trillion
- xAI reported a loss of $1.46 billion in Q3
- The company’s expenses totaled nearly $7.8 billion in the first nine months of 2025
- A potential SpaceX-Tesla merger has been discussed, but its implications are unclear
- Investors are questioning the long-term financial viability of the combined company